(Ecofin Agency) - Nigerian President Muhammadu Buhari (pictured) presented on Tuesday, before the parliament, his budget draft for the next year. Amounting to 10,330 billion Naira, this budget is significantly higher than the 8,900 billion Naira adopted for 2019.
Despite a difficult economic context, the government expects public revenues to exceed 8,155 billion Naira next year, up 7% compared to 2019. The country, which has always struggled to meet its public revenue mobilization targets, is betting on the increase in value-added tax (VAT) to improve its performance. In 2020, the value-added tax is expected to rise from the current 5% to 7.5%.

Nigeria also forecasted oil revenues to stand at 2,640 billion Naira next year, in a context marked by volatility in oil prices which has often slowed down growth prospects. Non-oil revenues are expected to exceed 1,810 billion Naira, while other revenues are expected to exceed 3,700 billion Naira. The government hopes to achieve this objective by improving the collection of its tax resources, in which more than half of Nigerians do not participate, according to a study published in 2018.

The budget deficit is projected at 1.52% of GDP and the government wants to offset the gap with new domestic and external borrowing and privatization strategies.

Moutiou Adjibi Nourou